We continue to remain positive on Bharat Electronics (BEL) given 1) its market leadership in defense electronics and ability to benefit from defense indigenization as well as from the upcoming large defense platform orders (QRSAM, MRSAM, Tejas Mk1A, naval platforms, etc.), 2) a strong order book of INR746b as of 2QFY25-end, providing healthy visibility on revenue, 3) stable margins and control over working capital, and 4) healthy return ratios
The company is expected to fundraise a sum of Rs 6,000 Cr, which is expected to generate a GDV of Rs 70,000-80,000 Cr in the coming years. With a net debt-to-equity ratio of 0.02, the company is well-positioned to raise additional funds if required. Oberoi has always maintained a net debt-to-equity level of 0.4, demonstrating the company’s financial discipline and ability to stay solid even during challenging cycles
SSWL is targeting existing aftermarket steel wheel customers for cross-selling alloys in international markets, indicating strong growth potential. The company has signed long-term agreements with several tractor OEMs and identified new international markets for the OTR segment, supporting growth and margins
According to the latest newsletter by Solidarity Investment Managers, if one wants to target a better return from the market, about 33% of the portfolio has to be invested in non consensus ideas which are out of favour at present. These are in companies facing some growth challenges at present or getting punished due to a strategic error, but with strong market positions/ability to correct errors
We argue Havells has been gaining market share in most categories over past several quarters. Moreover, we reckon it is well placed to sustain this trend on the back of recovery in consumption demand and real estate along with sustained industrial sector capex
With strong traction in export/domestic markets, new capex and expansion in margins, we expect the company to deliver a strong CAGR of 21% and 28% in revenues and PAT, respectively over FY24-FY27E. The lean balance sheet and strong cash flow generation will improve ROCE to 25.3% in FY27E from 22.5% in FY25E which will ensure the company commands rich multiple
Quess Corp Ltd (Quess) is India’s largest staffing/business services company with its business spread across staffing (WFM), facility management (OAM), BPO (GTS) and a platform (job portal Foundit). It is a leader in the flexi-staffing and facility management segment and is well placed to benefit from macro tailwinds like (1) formalisation of labour force, (2) proposed new labour laws, (3) push for creating a manufacturing hub through various PLI schemes, (4) creating internship opportunities, and (5) job generation in tier-2/3 cities
We reiterate our BUY rating on LTIM due to its superior offerings in data engineering and ERP modernization, positioning it well to capture pre-GenAI expenditures. We anticipate LTIM to outperform its large-cap peers and expect low double-digit CC growth for FY26. LTIM could have managed its top-level churn rate more effectively post-acquisition. Nonetheless, we believe the toplevel attrition rate might remain benign going forward.
The increasing share of equity in the overall AUM, driven by an anticipated higher CAGR of 30% in equity AUM vs. overall AUM CAGR of 24%, will help to mitigate the potential decline in yields. We expect scale benefits from new businesses (Alternates & Passives) to translate into higher profitability
Jindal Steel & Power (JSPL) is one of India’s leading steel producers. With crude steel capacity of 9.6 million tons per annum (MTPA) it has major plants located in Angul (Odisha, 6 MTPA capacity) & Raigarh (Chhattisgarh, 3.6 MTPA)
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